Disability Insurance

Everyone who works for a living is very familiar with what can happen if they are fired. But what we don’t often think about is the same outcome due to becoming unexpectedly seriously disabled.

How likely is it that you will become disabled? According to one study, 30% of all Americans between the ages of 35 and 65 suffered a disability lasting at least 90 days, over the studied period.

A few individuals do manage to qualify for disability benefits from Social Security. However, the Social Security definition of “disability” is so strict that over 60% of initial claims are rejected.

Many employers will provide, or make available, disability insurance on a group basis. However, even those who are covered by a group policy can still be at substantial risk. Employer-sponsored disability policies seldom provide you with more than 60% of your monthly salary. Many policies set a monthly maximum benefit that may be far less than what some people earn. Income taxes can also be an issue. If the employer is paying the full cost of the coverage, disability benefits are fully taxable.

For many, the real solution to the disability problem is individual disability income insurance. Although individual policies may cost you more, as long as you pay the premiums, the benefits are not taxable. Plus, an individual policy allows you to tailor its terms to fit your own needs. Here are a few factors to consider when shopping for an individual disability policy:

• Company strength – You need to know if the insurance company is financially sound.
• Definition of disability – Look for a policy that defines disability in the broadest terms possible. Some policies will permit you to work in a different occupation and still collect disability benefits.
• Elimination period – How long must you wait before disability payments begin?
• Inflation protection – Try to find a policy that adjusts benefits for inflation.

We use a process called The Viti Needs Assessment Funnel to help you pinpoint your unique needs, and The Viti Solution Screen™ to get an effective, comprehensive policy in place. As an unbiased third party, we help you find the best match of cost and features for your situation. We are able to do so at no additional cost to you.